A group of Canadian underwriters has bought 23 million new shares of TVX Gold (TSE) at $8.75 each. The sale will net TVX $201.2 million before commissions.
The group — led by Burns Fry and including RBC Dominion Securities, Midland Walwyn Capital, Nesbitt Thomson, Scotia McLeod, Wood Gundy, Gordon Capital and Toronto Dominion Securities — will offer the shares to the public in Canada and internationally.
Victor Wells, vice-president of finance for TVX, said the company is very pleased with the offering. He told The Northern Miner that proceeds would be used to retire short-term debt and fund exploration and acquisitions. This sale is the second major transaction involving TVX in less than six months; in July, a group of Canadian underwriters bought Inco’s (TSE) 61.8% controlling interest in the company.
TVX has an interest in six producing gold mines in North and South America. For the first nine months of 1993, its share of gold equivalent production was a record 328,000 oz. (271,100 oz. gold and 4.8 million oz. silver) at a cash production cost of $170 per oz.
Prior to the new issue, the company had 135.1 million shares outstanding which, at presstime, were trading in the range of $9-9.13.
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